KP, Centre agree on framework to resolve development funds issues

The Khyber Pakhtunkhwa (KP) government and the federal authorities have agreed on a framework to address delays in development funds, particularly those allocated for the province’s merged tribal districts, Adviser to the Chief Minister on Finance Muzzammil Aslam said. 

Speaking at a press conference, Aslam said Chief Minister Ali Amin Gandapur had raised concerns over the delayed release of Accelerated Implementation Programme (AIP) funds during a meeting with Federal Planning and Development Minister Ahsan Iqbal. Both sides agreed to establish a joint mechanism to resolve the issue, with the KP government providing relevant data to the federal authorities.

The discussions aligned with the National Economic Transformation Plan 2029-2025 (Uraan Pakistan), which focuses on five key sectors: exports, equity, e-Pakistan, energy and infrastructure, and climate change. 

Minister Iqbal, who was also present, confirmed that discussions with the KP leadership were productive and that the federal government would fully support the province’s development agenda despite political differences. He stressed that both administrations were committed to ensuring stability and economic growth.

Gandapur reiterated KP’s commitment to the initiative, stating that political differences would not hinder the province’s contributions to national development. He underscored the province’s economic progress, revealing a budget surplus of Rs169 billion and the establishment of a Rs70 billion debt management fund in the first half of the fiscal year. 

He also highlighted private sector investments of Rs15 billion in industrial zones and Rs200 million in loans provided under the Insaf Rozgar Scheme, which has generated over 137,000 jobs.

Gandapur criticised the federal government for what he termed an inequitable distribution of Public Sector Development Programme (PSDP) funds. He pointed out that of the Rs36 billion allocated for seven projects in KP, only Rs2.65 billion had been allocated, with just Rs1 billion released. In comparison, Sindh received Rs49.2 billion, Punjab Rs7.1 billion, and Balochistan Rs23.81 billion.

He also emphasized the importance of the Chashma Right Bank Canal project for the province’s food security, stating that although Rs17.51 billion had been allocated in the current budget, no funds had been disbursed. The KP government, he said, had committed Rs60 billion to the project, with Rs500 million already released for land acquisition.

The chief minister urged the federal government to increase PSDP allocations for KP and ensure timely fund releases for ongoing projects.